How many agents are using the new system Real Referrals released last month? I have been using it sparingly, but the couple of times I have used it, it seems to work really well.
Which leads me to the real reason for this post...I have been seeing a lot of investors putting out the call for referrals for investor-friendly agents in different parts of the country. I would love to be able to recommend agents to them, but my reach does not really go much further than the Dallas Fort Worth area. When I starting using Real Referrals, I thought there might be some synergy between the two tools (BP and Real Referrals).
What does everyone else think about this? Do we want to set up a real referrals network for investor friendly agents? We could use the real referral tool, or even something as simply as a facebook page. I belong to a couple of other facebook referral pages and they work pretty well.
@Adam Wright Ive never heard of Real Referrals. However I do like the idea of using the contacts on BP to leverage a referral network. I have already established a referral relationship with a few agents in other markets...but there are so many markets where I do not have someone to refer people to. This is actually an issue for me, as the DC market is very transitory. We have a large percentage of people who both move to, and away from DC every year.
@Russell Brazil I just hate wasting the opportunities presented here at BP for investor friendly agents. The biggest issues I have with referrals is tracking the outcomes of the referrals and keeping the other agent honest on the referral fee. Outside of Real Referrals, I use a form that I send to the agent where the other agent agrees to the referral fee and then I send the contact information. Real Referrals attempts to automate this process and monitor the transactions between the agents. The company takes a cut of the final referral payment, which I don't mind giving up since they automate the whole process.
I wonder if BP would be interesting in starting a referral tool for agents to utilize since we all use it anyway, It might be another source of income for the website. BP, Are you reading this? What do you think? I would be happy to help.
@Adam Wright I dont put too much thought into keeping track of the referrals. If the agent on the other end is screwing people out of referral fees, thats going to catch up to him pretty quickly and he is going to get cut off from referrals. Especially if it is someone on here where all you need to do is post a message saying so and so didnt pay my referral fee...dont refer to him.
For my incoming referrals, I dont do too much to track it either...my brokerage has a system where I just enter the referral into the computer along with the referring agent, then when someone gets paid, it could be years later, the checks go out to where they are supposed to.
Having a BP based system would be nice....but the thing is that is going to take money to create, and then that in turn will cost us an agents who will need to contribute the money to make that feasible. Also if BP takes up the cause to do that, Im sure they have to keep an eye on what kind of liability they create for themselves.
@Russell Brazil All good points. I really didn't give my referrals all that much thought before I was introduced to Real Referrals. It occurred to me that one can make a nice steady income on referrals alone. Like I wrote in my original post, I saw two systems I was using (Real Referrals and BP) and thought there might be a way to combine them together. It would be nice to find a way to do this, but I understand cost and liability always come into play with the business atmosphere we exist in today. I trust BP, however, and if anyone could pull it off, it would be this great team of people.
Adam or Others,
What is considered an acceptable Referral Fee Percentage/Amount for referrals to Investor Friendly Realtors, that you send deals/properties to them to be listed by them?
@Hal Mullins I usually ask for 25% referral fee on all my referrals despite if they are investor friendly or not. How about you?
Hello Adam. Thanks for beginning this discussion! I’m the majority owner of the new Real Referrals App... AND I’m a Realtor – I’ve been knocking on doors for about 15 years, and if I’ve learned anything it’s that Agent referrals are the best form of business. It’s because of the referral fee (normally 25%). See, we only pay that when we get paid for a completed deal. No deal – no fees! It’s the only way a Realtor can link costs to profits. Everything else is based on hope. We can send out mail to our database (and you should) but the cost doesn’t guarantee a return of profit. Referral fees do! I’d love to pay $1,000,000 in referral fees because that would mean I kept $3,000,000 in profits…
We built the app to enable all agents (regardless of your time in the business or your marketing budget) to expose their profile and effectively deliver our contact information (along with some detail about our specialization) directly to anyone that has a referral in our local marketplace. Imagine being able to put your card into the hands of someone searching for a referral partner in your city – right as they are doing it… We built in a CRM to remind the receiver of a referral to keep the sender updated on their progress with regular reminders. We’ve even included some language that assures the sender that they’ll get paid once a deal is done. Our app is NON-BRAND specific because let’s face it, there are good and bad agents in all brands so we’ve even built-in an agent endorsement program for agents involved in a deal to endorse the other party if they were happy.
I hope this helps you understand the value of our product and I look forward to seeing you succeed. If there’s ever anything you need please don’t hesitate to contact me direct. I don’t know anyone at BP but we’d be more than happy to discuss a pilot project if that’s available.
Thanks for the reply. We are wanting to receive from 25% to 35%. We feel like if we can send a larger quantity of lead referrals to one particular Agent, it would warrant the higher referral fee being paid to us. We are agents, but do not want to participate in those activities. (not to compete with them) Thanks again for your thoughts.
I'm a Realtor in Houston, Texas and would definitely like to be a part of the
Join the Largest Real Estate Investing Community
Basic membership is free, forever.